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Posts Tagged ‘Venture Capital’

Yet another article on the lack of cash for start ups in 2010. The WSJ reported that small startups are facing cash crunches as investors have been pulling back from this segment. Early stage startups are considered high risk and rightly so, as they are, and hence funding is getting harder to find. Angel investors, whom often invest in early stage companies, have also been pulling back. The good news is access to capital is better this year but forecasts suggest another 12 to 18 months of tightness.

Source: Start-Ups Chase Cash as Funds Trickle Back – WSJ.com.

Generate a venture financing term sheet online for free. The respected law firm Wilson Sonsini Goodrich & Rosati (WSG&R), in Silicon Valley, are the creators of this form. It is based on a similar form they use inside the law form and offers basic tutorials and annotations on financing terms as part of the firm.

Source: WSGR Term Sheet Generator.

As reported in the Wall Street Journal small business section, Venture Capital firms are struggling to raise new cash. With the down economy, return on investments not good, there is a feeling that the shakeout will continue impacting many firms.
The following graph, using data from VentureSource, shows the decline from 2007 to 2009. Firms are considering either lowering their fund fees for investors or raising smaller dollar amounts for the fund. Some funds are going over-seas while others have de-emphasized investments in certain segments.